Problem #5Accrual of Interest RevenueMelinda Almazan, an angel investor, decided to invest P1,200,000 excess cash incertificate of deposit on April 1, 2019. The certificate carried an 8% annual rateinterest and a 1-year term to maturity. Interest will be withdrawn monthly (disregardtax effects).1.Required:1.What amount of income will be recognized for the year ending Dec. 31, 2019?2.What is the effect of the adjusting entry on the accounting equation?3. What amount of cash will be collected for interest revenue in 2019?4. What is the amount of interest receivable as of Dec. 31, 2019?5. What amount of cash will be collected for interest revenue in 2020?6. What amount of interest revenue will be recognized in 2020?7. What is the amount of interest receivable as of Dec. 31, 2020?

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Accrual of Interest Revenue Melinda Almazan, an angel investor, decided to invest P1,200,000 excess ca certificate of deposit on April 1, 2019. The certificate carried an 8% annual nterest and a 1-year term to maturity. Interest will be withdrawn monthly (c ax effects). equired: What amount of income will be recognized for the year ending Dec. 31, 201 What is the effect of the adjusting entry on the accounting equation? What amount of cash will be collected for interest revenue in 2019? What is the amount of interest receivable as of Dec. 31, 2019?

Accrual of Interest Revenue Melinda Almazan, an angel investor, decided to invest P1,200,000 excess ca certificate of deposit on April 1, 2019. The certificate carried an 8% annual nterest and a 1-year term to maturity. Interest will be withdrawn monthly (c ax effects). equired: What amount of income will be recognized for the year ending Dec. 31, 201 What is the effect of the adjusting entry on the accounting equation? What amount of cash will be collected for interest revenue in 2019? What is the amount of interest receivable as of Dec. 31, 2019?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 16E

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